Build the workforce of tomorrow, today – Why, when, and how to reskill now

The total number of skills required for a single job is increasing by 10 percent annually.

How are employers responding to this need for new employee skills?

Not so well, according to a McKinsey report. Nearly 90% of employers are either currently facing a skill gap, or expect to, in the next five years. Also, a high share – 72 percent – do not make effective decisions on how to close these skill gaps. This is owed to a lack of visibility into the skills of the existing workforce and the effects of disruptions. Almost 60% of organizations do not have a clear understanding of the roles that are likely to be disrupted.

Nevertheless, most organizations are taking significant steps to address their talent needs. As per the same survey above, about 56 percent are utilizing skill building, as accomplished through reskilling programs – which is cited as the second-most effective tactic, the first one being external hiring, to address skill gaps. Unfortunately, hiring a new employee is 6 times more expensive than reskilling existing talent, as per ADP.

Certainly, reskilling is a better choice for employers, but does it have to be now?

The time is now: Why immediate workforce reskilling is essential  

By 2025, around 85 million jobs may be displaced by a division of labor between humans and machines, with 97 million new roles emerging that are more adapted to machines and algorithms, according to The World Economic Forum. McKinsey also reports that AI adoption has more than doubled over the past few years, with 50% of companies integrating AI in at least one business function. 

With industries undergoing rapid technological advancements and market disruptions, delaying reskilling efforts risks widening the existing skill gap. This delay could hinder organizational agility and competitiveness in an increasingly dynamic business environment. History offers stark lessons about the consequences of failing to adapt. Consider Blockbuster and Kodak, once-dominant players in their industries, but their reluctance to embrace digital technology resulted in their decline and obsolescence.  

Reskilling your team – Time to invest, or time to hold off? 

One big indicator that employees need reskilling is that their current roles will be eliminated or remolded into a new role altogether, say, in less than three years. When employees gain a greater sense of job security, they are also less likely to leave an organization in search of new opportunities.  

Attractive as these benefits are, reskilling may not be the right move or the right time for every organization. The following considerations can help determine if reskilling makes sense for an organization or whether they should consider it another time. 

Reskilling becomes a strategic advantage when: 

• The workforce has adjacent skills that are declining in demand. 
• Current roles are increasingly being automated. 
• Recent technologies are increasingly starting to impact the industry. 
• The organization discovers there are talent shortages. 
• Customer preferences and expectations are evolving. 
• Strategic partnerships or collaborations require new skills. 
• Competitive pressures demand constant innovation. 
• The organization is undergoing a digital transformation. 

Reskilling might not be advisable if: 

• Employees identified for reskilling show little interest. 
• There is insufficient time to train employees effectively. 
• The skills required are not critical to current business needs. 
• The industry is stable, and skill demands are unlikely to change. 

Reskilling amidst AI’s rise: How? 

As per a LinkedIn report, nearly 90% of Learning and Development (L&D) professionals agreed that proactively building employee skills will help adapt to the future needs of work. However, only 15% of L&D professionals built an active reskilling program, and, surprisingly, only a mere 5% have made it to the stage where they are measuring and assessing results.

The problem? 

The L&D evolution is not happening fast enough, a Deloitte survey reveals. 

About 39 percent of professionals are stuck in the preliminary stages, like ideation, getting buy-in, and assembling a team. In contrast, a remarkably high 37% are stuck in solely identifying skill gaps, with only 15% piloting the program.  

As discussed in the beginning, 72% of employers do not make decisions reskilling due to a lack of transparency into existing skills of the workforce.  

This data reveals two things: 

First, the connection between LinkedIn and Deloitte’s reports highlights that typical approaches to L&D are not sufficient for the current pace of change of skills and job requirements. The call to “adopt an agile learning culture” directly addresses this issue. It involves adapting quickly to changing circumstances, starting building on critical future skills, and staying ahead of changes.

However, building an agile learning culture cannot be done alone. It can only be designed when partners across the organization come together and listen to employees. More than ever, L&D professionals will also have to become change agents.

Second, employers need better visibility and transparency into current skills of the workforce. This is important before piloting or activating a program.

A Learning and Development (L&D) framework to stay ahead of changes through reskilling 

The following carefully designed L&D framework addresses the mentioned issues. 

As discussed, achieving success in L&D efforts requires a collaborative approach – a well-designed interplay between the leadership, L&D professionals, line managers, and employees.  

Leadership – Setting the strategic direction 

Companies that have leaders actively involved in transformation projects see higher success rates, and are more likely to succeed, according to Harvard Business Review. Better communication reduces resistance to change, which is vital since employee resistance is a major cause of failure in 70% of transformation initiatives. This is why leaders must emphasize the strategic importance of reskilling to dispel any anxieties. 

This builds a culture of continuous learning, where employees view reskilling as a way to career advancement. In fact, leaders who model learning behaviors create an environment where employees are more willing to take risks and innovate, as per McKinsey. Furthermore, leaders must show commitment by allocating resources for training. This gives employees a signal that reskilling is not a fleeting initiative, but a core strategic investment. For instance, Amazon invested $700 million to upskill 100,000 workers by 2025, which led to significant improvements in business performance, local business growth, and a higher average wage in local communities. In addition, Amazon is also helping its workers find adjacent roles in their communities.  

HR – Multifaceted role in reskilling programs 

Now, leaders must work closely with HR and L&D professionals to set clear, achievable goals for line managers and supervisors. Here’s how it can be done: 

Employee skill profiles 

This involves leveraging data analytics, in collaboration with L&D professionals, to conduct a thorough skills audit. This creates detailed employee skill profiles, so that there’s better transparency into the workforce’s existing skills. These skill profiles encompass: 

• Current skill levels  

• Knowledge gaps 

• Potential for internal mobility  

With this, employers enjoy transparency over skill gaps, preparing employees for new roles within the organization. Since an employee’s expertise is always growing and sometimes skills profiles are incomplete, it’s important that the employee has some degree of autonomy over their profile, so they can add more skills from their history or previous experience. 

Setting goals  

With the support of HR and L&D teams, leaders must ensure that everyone understands the objectives and their roles in achieving them. In cases like these, using platforms that help set goals easily, while focusing on individual performance is necessary, especially if the company is reskilling in the age of AI. Platforms like Keka make sure that managers and heads are updated with each status of objectives so that nothing is delayed. This is key to ensuring alignment with the initiative’s objectives.  

Program design and piloting 

Before launching the program, it might be more beneficial to pilot it on a smaller scale. HRs can oversee these pilot programs, ensuring that the program is well-tailored to scale up successfully. As mentioned, continuous communication is important to increase the success rates in reskilling initiatives.  

Line managers – Personalized learning and performance enablement 

Line managers are critical change agents who close the gap between strategic goals and individual development. Empowered with the knowledge equipped by L&D professionals, line managers can translate strategic goals into individual and team-based learning objectives.

Personalization is key! By leveraging their deep understanding of employee strengths and areas for development, managers can provide valuable input to tailor learning experiences to individual needs. Furthermore, they also play a role in identifying resistance during the program, ensuring sustained engagement.

Employees – Active participants 

In the reskilling process, employees are not just passive recipients. Their active participation and willingness to learn new skills is non-negotiable for the program’s success. Employees must also take ownership of their learning journeys. 

All stakeholders – Measuring impact and ensuring continuous improvement  

Upon program completion, a rigorous evaluation process follows. Metrics on goal achievement, ROI analysis, and employee sentiment surveys provide insights into the program’s success. All stakeholders should have a thorough examination of shortcomings, if any.  

• Were the goals unrealistic? 
• Were learning materials ineffective? 
• Was employee resistance a significant factor? 

By analyzing these questions, the team can identify root causes and take corrective actions. 

If the reskilling program is successful, do not celebrate early. The ultimate test lies in embedding newly acquired skills into daily work processes. The stakeholders must ensure continuous application, whether it be through redesigning workflows, implementing knowledge-sharing platforms, or integrating skill development into performance management processes. As you can see, the true test lies in sustaining the change. This is where the real challenge for many organizations often begins. Further exploration of HR’s role in sustaining this change is a big next step. Learn more about this here.